So is Multi Level Marketing a good business model? Well MLM or multi level marketing involves the direct selling of product and service through personal recommendations and intermediaries between the company and the consumer and in return for the intermediary’s recommendation; they receive a commission should there be a sale. MLM is different from your everyday business and you probably won’t see it being advertised in the media.
Is MLM a viable business model? There are two sides to everything and even with MLM there are pros and cons. First of all, there is a very low barrier to entry for the MLM market. It doesn’t require any substantial entry requirement, the representatives of the MLM company does not require college degrees or any relevant experiences to participate in MLM..
Secondly, MLM companies only manufacture and drop-ship the product to the customers. This means that the company itself does not manufacture the sold product or service but instead is drop-shipping the products to its customers. This allows the company to avoid the hassle of actually developing their own product line, delivery system, order processing system and overhead costs. The only thing the company has to worry about is making the sales pitch to the customer.
MLM sales representatives also get the benefit of working flexible hours. This allows MLM representatives to work their full time jobs in the morning, and their MLM business in the evenings and weekends. Even housewives and mothers can run this business while being at home. It doesn’t require an office, only a laptop and an internet connection, and it doesn’t have to be a full-time gig, it can be done part time allowing great flexibility in your schedule.
Now we move on to the cons of MLM as a business model. MLM businesses usually encourage you to approach the people you know closely as prospects when you first start out with the logic that you already know these people, you only need to pitch the idea to them to make a sale. This is a bad move. Doing so might alienate you from your friends, or also known as your warm market which is a sum up of all the people you know. If they were to heed your advice and join the venture with a MLM company that you suggested then fail in the business venture, you might lose your social circle, and a lot of your close knit friends and even family.
MLM companies also require you to commit to them financially. More often than not, these MLM programs require you to purchase an amount of their products each month to remain in their program. Therefore, you’ve got to be sure how much money you are committing to them monthly. This being said, making sure that what you’ll be buying is a quality product is important. It’s also important that you are genuinely interested in the product and you’re not just going to chuck it into a cupboard and forget about it. Make sure you buy something that you’ll be using
Contrary to what MLM marketers will say to you, MLM is not an easy way out and it is most definitely not for everyone. Being successful in a MLM business requires you to be a natural born leader that can motivate people, both yourself and others when it comes to work and business. Unless you’re that kind of a person I regret to tell you that MLM is not for you.
With all these information given to you, I hope you can make a good decision for yourself.